The agency said Caterpillar has strengthened its business model through restructuring last year. In its most recently quarterly filing in April, the company said that it reversed its first-quarter losses and was ramping up production as demand improves with the global economy.

Moody's said the outlook on the company's investment-grade "A2" rating is now "Stable," up from "Negative."

Caterpillar shares were up $1.32, or about 2 percent, at $60.59 in afternoon trading.